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Strategies & Market Trends : Position Trading Forum

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To: Glenn who wrote (4004)10/21/1998 8:35:00 PM
From: Keith Sprague  Read Replies (1) of 7247
 
Glenn,

Here is why I bought XYLN:

Estimated growth rate in the future (based on CC): 25-30%
Next Years Earnings Est: 1.07
Current P/E based on next years est: 14.14
Fair Value based on forecasted growth (IMO): $32-$35

I base my valuation on the fact that the company will grow above the industry average, which was mentioned as 25% in the CC. I also throw in a couple of bucks for earnings consistency recently. That is my fair value of XYLN, without taking into account any merger possibilities. Throw that in the mix, and IMO, this stock could see $40 sometime next year if they are not acquired before that point. I doubt I will hold til $40, but I do plan on holding until $30-35. Just my take on XYLN.
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